HomeMy WebLinkAboutPIN_Statement_Addressing_Projects_Compliance_With_Decision_Criteria_20210521_v1.pdfSECTION 12
STATEMENT ADDRESSING PROJECT’S COMPLIANCE
WITH EACH OF THE FOLLOWING DECISION CRITERIA
1. DEMONSTRATION OF COMPLIANCE AND SUPERIORITY REQUIRED
Applicants must demonstrate that a proposed development is in compliance with the purposes of this
Section and with the Comprehensive Plan, that the proposed development will be superior to that which
would result without a planned urban development, and that the development will not be unduly
detrimental to surrounding properties.
APPLICANT RESPONSE:
Understood, the documents submitted with the PPUD will show that the proposed design solution and
pubic benefits will be in line with this Section and the Comprehensive Plan of the City of Renton.
2. PUBLIC BENEFIT REQUIRED
In addition, applicants shall demonstrate that a proposed development will provide specifically identified
benefits that clearly outweigh any adverse impacts or undesirable effects of the proposed planned urban
development, particularly those adverse and undesirable impacts to surrounding properties, and that the
proposed development will provide one or more of the following benefits than would result from the
development of the subject site without the proposed planned urban development:
a. Critical Areas: Protects critical areas that would not be protected otherwise to the same degree as
without a planned urban development; or
b. Natural Features: Preserves, enhances, or rehabilitates natural features of the subject property, such
as significant woodlands, native vegetation, topography, or noncritical area wildlife habitats, not
otherwise required by other City regulations; or
c. Public Facilities: Provides public facilities that could not be required by the City for development of the
subject property without a planned urban development; or
d. Use of Sustainable Development Techniques: Design which results in a sustainable development; such
as LEED certification, energy efficiency, use of alternative energy resources, low impact development
techniques beyond that required by the Surface Water Design Manual, etc.; or
APPLICANT RESPONSE:
The project is providing public amenities that would not otherwise be required by the City, nor developed
within the parcel without a planned urban development. The main public amenity that will be constructed
is a pedestrian promenade designed along the west façade of the property that will connect Grady Way
with Burnett Linear Park. The promenade and related pocket parks, landscaping and plaza areas equate
to approximately 11,880 SF, which is 20% of the site area and is a significant amount of area that has been
developed for public amenity space. The promenade will be comprised of pocket parks, landscaping,
seating and plaza spaces. The surface treatments will be comprised of multiple paving types, colors and
textures as well as green space.
Other public amenities include additional landscaping, seating and overhead weather protection along
Williams Avenue.
Additional to exterior public amenities, the project is an affordable housing project that will provide the
public benefit of housing opportunities to the residents of the City of Renton. This is a major public benefit
that would not necessarily be built at this site without the planned unit development process. Please see
attached letter from the property owner and affordable housing developer GMD.
Sustainable Development techniques will be utilized through energy efficiency systems and low impact
development. These are developed due to complying with affordable housing credit requirements and
would not necessarily be provided with other developments.
Critical areas, and natural facilities are not present on site, so those will not be enhanced through the
planned unit development process.
e. Overall Design: Provides a planned urban development design that is superior to the design that would
result from development of the subject property without a planned urban development. A superior
design may include the following:
i. Open Space / Recreation:
• Provides increased open space or recreational facilities beyond standard code requirements and
considered equivalent to features that would offset park mitigation fees in Resolution 3082; and
• Provides a quality environment through either passive or active recreation facilities and attractive
common areas, including accessibility to building from parking areas and public walkways; or
APPLICANT RESPONSE:
A major public benefit that the project is providing will be the pedestrian promenade that will link Grady
Way with Burnett Linear Park. The promenade includes pocket parks, landscaping, seating, plaza space
and artwork, among other benefits that will be designed to be used by the public.
Another public benefit is proposed with seating, landscaping and weather protection designed along the
street frontage along Williams Avenue.
The project is also providing private outdoor and recreational space at a raised roof top deck at Level 3
and another one located at Level 6.
All ground level open space / recreational areas will be to the building and parking areas.
ii. Circulation / Screening: Provides superior circulation patterns or location or screening of parking
facilities; or
APPLICANT RESPONSE:
The main parking facility is located within the building so that it is screened from the public view. This is
not required by Code and will be a benefit to the public in the fact that the project will not have the majority
of the parking provided in a surface parking lot. This is not necessarily how another development would
be planned as this is a significant cost increase compared to surface parking.
iii. Landscaping / Screening: Provides superior landscaping, buffering, or screening in or around the
proposed planned urban development; provided, common open space containing natural features may
be left unimproved; or
APPLICANT RESPONSE:
The proposed landscaping is superior to what would be required by Code and with the construction of the
pedestrian promenade on the west side of the property the project is developing an extensive amount of
landscaping for a project of this size and location.
iv. Site and Building Design: Provides superior architectural design, placement, relationship or orientation
of structures, or use of solar energy; or
APPLICANT RESPONSE:
The building is sited in the south east corner of the site so that it is positioned adjacent to the street
intersection and will create a continuous street front along both Grady Way and Williams Avenue. The
building is set back from the west property line in order to provide an extensive pedestrian promenade
that will link Grady Way with Burnett Linear Park. The building has incorporated a step down at the upper
level along the north property line to provide a zoning transition to the adjacent property to the north,
which is in a lower density zone. The middle of the building has been opened up along the north property
line as well to provide a buffer to the north and a courtyard space has been designed in this area for use
by the residents. Additional building setbacks have been provided along the north property line as a buffer.
The building design and materials are developed in a harmonious way to respond to the City’s design
guidelines as well as to other similar buildings in the area. Building modulation, residential private decks,
material and texture changes, large residential window openings and a modulated roof line add to the
character of the building and reflect a high quality design including materials.
Solar panels along with other sustainable design features will be constructed as part of this development.
v. Alleys: Provides alleys for proposed detached or attached units with individual, private ground related
entries.
APPLICANT RESPONSE:
There are no alleys adjacent to this property, so this section does not apply.
3. ADDITIONAL REVIEW CRITERIA
A proposed planned urban development shall also be reviewed for consistency with all of the following
criteria:
a. Building and Site Design:
i. Perimeter: Size, scale, mass, character and architectural design along the planned urban development
perimeter provide a suitable transition to adjacent or abutting lower density/intensity zones. Materials
shall reduce the potential for light and glare.
APPLICANT RESPONSE:
The only property that is abutting or adjacent to the subject that is a lower density zone is the property to
the north, which is currently a multifamily development. The proposed design only has a portion of the
building located near the property line to the north and has provided an upper story setback in this
location. The rest of the building is set back at least 50 feet from the property line. The upper story setback
along this façade is 40 feet from the property line as well. Along with the building setbacks, the middle of
the building has been carved out facing north and a residential plaza is designed in the middle of the
building. This will give relief to the north property transition as well as create elevated green space that
can be seed by the neighboring development. The building is also set back on the first floor adjacent to
the property to the north, which will give relief to the neighbors on the pedestrian level. This setback is
approximately 15’ in height which brings down the scale of the building and allows light through at the
pedestrian level.
Along with being a much smaller mass facing the north property line, smaller windows are also planned
along this façade so that they are less impeding on the neighboring development.
The pedestrian promenade links Grady Way to Burnette Linear Park and terminates at the north property
line, which will give access for the residents of the property to the north to Grady Way through the
promenade.
Landscaping is also provided at the zoning transition to act as a buffer between the properties.
ii. Interior Design: Promotes a coordinated site and building design. Buildings in groups should be related
by coordinated materials and roof styles, but contrast should be provided throughout a site by the use of
varied materials, architectural detailing, building orientation or housing types; e.g., single family,
detached, attached, townhouses, etc.
APPLICANT RESPONSE:
The development is only one building, so this section does not apply.
b. Circulation:
i. Provides sufficient streets and pedestrian facilities. The planned urban development shall have
sufficient pedestrian and vehicle access commensurate with the location, size and density of the proposed
development. All public and private streets shall accommodate emergency vehicle access and the traffic
demand created by the development as documented in a traffic and circulation report approved by the
City. Vehicle access shall not be unduly detrimental to adjacent areas.
APPLICANT RESPONSE:
The pedestrian and vehicular access around and through the subject property has been designed to
accentuate the pedestrian experience by providing a safe and comfortable experience for the user.
Considering the project is located at the intersection of Grady Way and Williams Avenue, there will be
sufficient sidewalk circulation areas around those two facades of the building. Landscaping and seating
will also be incorporated around the street fronts in these locations. The pedestrian promenade is located
along the entire west side of the property and will allow safe pedestrian circulation around this area, which
links Grady Way to Burnett Linear Park as well as to the building entrances. Vehicular access is primarily
from Williams Avenue on the north east side of the parcel, which allows users to either parking in the
surface parking lot to the north of the property, but primarily in on of the two parking garages within the
building. All emergency vehicles will either access the site from Grady Way, Williams Avenue or from the
vehicular loop around the building. A traffic report addressing the parking demand will be provided with
the PUD submittal.
ii. Promotes safety through sufficient sight distance, separation of vehicles from pedestrians, limited
driveways on busy streets, avoidance of difficult turning patterns, and minimization of steep gradients.
APPLICANT RESPONSE:
The primary vehicular entrance is located in the north east portion of the site off of Williams Avenue as
this is the less busy street in comparison to Grady Way. Sufficient site distances are provided from both
curb cuts in order to minimize traffic impact when entering and leaving the subject property. The parking
entrance is located in the north area of the site and all pedestrian access and circulation is located on the
south, east and west sides of the site, so there are no overlapping circulation patterns with pedestrians
and vehicles. The site is generally flat, so there will be no issue with steep gradients around the perimeter
of the building.
iii. Provision of a system of walkways which tie residential areas to recreational areas, transit, public
walkways, schools, and commercial activities.
APPLICANT RESPONSE:
The property is located at the intersection of Grady Way and Williams Avenue. Users of the building and
pedestrians alike can utilize Grady Way to connect with transit stops and other commercial activities in
the area to the west and north east. Williams Avenue links with downtown Renton, which has multiple
recreational, transit and commercial activity hubs. The project is creating a pedestrian promenade on the
west portion of the site that will link Grady Way, along with the residential users of the building, to Burnett
Linear Park to the north, which is a recreational area. The park is also a link to downtown Renton. There
is also a bus stop located in front of the development site.
iv. Provides safe, efficient access for emergency vehicles.
APPLICANT RESPONSE:
Emergency vehicles will be able to access the building from both Grady Way and Williams Avenue as well
as from the vehicular loop around the building. This will allow access around the entire perimeter of the
building.
c. Infrastructure and Services: Provides utility services, emergency services, and other improvements,
existing and proposed, which are sufficient to serve the development.
APPLICANT RESPONSE:
Utility services, emergency services as well as other improvements will be provided with the construction
of the development as required by local codes.
d. Clusters or Building Groups and Open Space: An appearance of openness created by clustering,
separation of building groups, and through the use of well-designed open space and landscaping, or a
reduction in amount of impervious surfaces not otherwise required.
APPLICANT RESPONSE:
As there is only one building designed on the property, the building is placed in the south east corner of
the site, which allows a significant open space in the form of a pedestrian promenade on the entire west
portion of the property. Additional open space is provided on upper level courtyards on Level 3 and 6.
e. Privacy and Building Separation: Provides internal privacy between dwelling units, and external privacy
for adjacent dwelling units. Each residential or mixed use development shall provide visual and acoustical
privacy for dwelling units and surrounding properties. Fences, insulation, walks, barriers, and landscaping
are used, as appropriate, for the protection and aesthetic enhancement of the screening of storage,
mechanical or other appropriate areas, and for the reduction of noise. Windows are placed at such a
height or location or screeded to provide sufficient privacy. Sufficient light and air are provided to each
dwelling unit.
APPLICANT RESPONSE:
The development consists of 136 affordable housing apartment units. Residential units are designed to
face the streets as well as the interior promenade/plaza spaces throughout the site. The units facing other
properties has been designed to be minimal, so as to have minimal impacts on neighboring developments.
The development to the west does not have residential uses, so this development does not impact that site
at all. The property to the north has residential units, so this project has only a few units facing that
direction and the window openings have been reduced to compensate for this. The majority of the building
does not face the north property in order to reduce the impact on that development.
Internal privacy between the units will be in the demising walls and floor/ceiling assemblies, which will be
designed the meet acoustical and insulation requirements for dwelling units. This will include the ratings
for the exterior windows and doors.
Storge and mechanical areas are designed to be inside the building or on the roof top of the building so
they will be screened from the pedestrian level and from adjacent buildings.
Sufficient light and air will be provided to all units.
f. Building Orientation: Provides buildings oriented to enhance views from within the site by taking
advantage of topography, building location and style.
APPLICANT RESPONSE:
Given the location of the site, the best views are out towards both of the streets. For this reason, among
others, the building has been placed in the south east corner of the site to allow as many units as possible
to maximize views of the immediate context on the lower levels and distant context on the upper levels.
The remaining units have been designed to take advantage of the views of the green spaces, which include
the pedestrian promenade on the west side of the property, the Level 3 courtyard in the middle of the
building and the Level 6 roof deck on the north side of the upper level of the building. All units will have
views of either the immediate context or one of the green spaces, if not both.
g. Parking Area Design:
i. Design: Provides parking areas that are complemented by landscaping and not designed in long rows.
The size of parking areas is minimized in comparison to typical designs, and each area related to the group
of buildings served. The design provides for efficient use of parking, and shared parking facilities where
appropriate.
APPLICANT RESPONSE:
The majority of the parking is provided in the enclosed parking garage on Level 1 and Level 2. The
remainder of the parking is provided as surface parking on the north side of the site. The surface parking
lot is minimal compared to other projects of this size and is screened by landscaping from the public streets
as well as from the adjacent property to the north.
h. Phasing: Each phase of the proposed development contains the required parking spaces, open space,
recreation spaces, landscaping and utilities necessary for creating and sustaining a desirable and stable
environment, so that each phase, together with previous phases, can stand alone.
APPLICANT RESPONSE:
The project will be constructed in one phase, so this section does not apply.
November 5, 2020
Matt Herrera, AICP
Senior Planner
City of Renton, Community and Economic Development
1055 S. Grady Way
Renton, WA 98057-3232
Matt,
We appreciate your time on the phone this week to allow us to candidly explain our challenges
as it relates to the development of our proposed family affordable housing project. I wanted to
summarize the discussion in this letter so you could share it with others at the city.
Overview of affordable housing market severely impacted by COVID
We began work on this site plan in what feels now like an entirely different world. Back in
February multifamily development was at a frantic, historic pace. Rents had been steadily
increasing for nearly a decade, real estate values continued to climb, vacancy in most markets
was under 2-3%, and all lenders and investors were extremely bullish about the Puget Sound.
Then COVID hit all of us in March. The impact was not immediately felt in our business but over
the summer and into this fall the impacts have become very real. Vacancy rates climbed,
delinquent rent increased, and the re-emergence rent concessions negatively impacted lender
and investor underwriting. The traditional tax credit investors had suddenly projected less
forecasted profits with their corporate clients which translated immediately to reduced
demand for low income housing tax credits. The investors that remained in the market became
very selective about what types of project they would agree to fund.
This is the backdrop of COVID related events that had a large influence on the evolution of our
plans over this period of time. If we failed to evolve our plan to the rapidly shifting lender and
investor criteria, we would not have a financeable project in the current environment.
Affordable Housing Feasibility
The financial feasibility of affordable housing is challenging and often fleeting and can
disappear in a very short period of time. I often describe this as getting “all the stars to line
up”. The feasibility requires a careful balance of land costs, construction costs, restricted rent
levels, operating costs, interest rates, investor pricing of tax credits, government policy at the
Federal, State, and local level, plus dozens of other factors. As developers we view our role as
shaping housing projects that are positive additions to a community and best optimize all of the
stakeholder interests.
When all of the many factors are balanced and the project is feasible, we want to move forward
as quickly as possible as we have experienced firsthand, projects that lost feasibility due to
shifting variables.
One major consideration in purchasing this property was the opportunity to develop a project
in a community that has made affordable housing a priority. With a housing action plan
currently being developed and significant attention paid to the need and creation of affordable
housing in the comprehensive plan, we felt confident that the City of Renton would be a
receptive and collaborative partner.
Design Plan Evolution
Over the past nearly 9 months the development plan has continued to evolve. A portion of the
evolution is due to refining the plan and adding essential detail addressing things like
circulation, mechanical rooms, trash collection locations and many other considerations. The
other and more significant element to the design evolution is responding to rapidly changing
requirements by our lenders and investors due to the impacts of COVID.
One of the biggest shifts has been due to lender and investor sensitivity to design that is
marketable. They increasingly see projects that are outliers in any respect, whether it is unit
mix, unit sizes, amenities or substandard parking ratios as adding risk to their investment. With
less investor demand we cannot afford to introduce elements of risk in our design or we risk
having an unfunded project.
We acknowledge that the plans we initially shared with the city have changed and evolved.
However, each change was done out of necessity. Our affordable housing world has changed
dramatically since we began talking and sharing our plan. We feel that in most ways the
current plan is much improved over previous iteration. We also feel that we have been very
receptive and responsive to all comments received from the city to the extent possible.
Current Feasibility
As mentioned, financial feasibility is challenging and potentially fleeting, however, today, with
the current plan we have a feasible project to move forward:
• Interest rates are low and we have interested lenders;
• Although tax credit pricing is down and investor interest is lagging, we believe with a
marketable design we can attract a tax credit investor.
• Microsoft: highly interested in assisting affordable/workforce housing on the eastside;
their financial help is key to making this project feasible.
• Construction: although construction costs have been increasing, we have acceptable
estimates from a trusted contractor.
• Tax exempt bonds: feasibility is reliant on an allocation of the highly competitive tax
exempt bonds by WSHFC; we believe the project will score high enough to gain an
allocation.
• Leasing and Marketing: our property manager, Indigo, who manages many multifamily
properties in the area has provided positive feedback on the design of the building and
units and assuming we provide sufficient parking for residents, the leasing will be
strong.
Parking Ratio
As developers we strongly dislike parking! It eats up valuable land, costs $30-50,000 per stall to
build (?), requires ongoing maintenance PLUS in tax credit affordable housing projects we are
prohibited from charging for parking. Over my career I have most often debated cities over
parking ratios for affordable housing, but typically they are requiring 2.0-2.5 stalls per
apartment and based on our experience residents of affordable housing tend to own far fewer
cars than a typical market rate renter.
However, in this case, and while we understand that Renton would permit as low a ratio as 0.4,
the feedback from our market study, lender, investor, property manager and others advised us
that this would be disastrous and that leasing would be challenging and result in high turnover.
In addition, the overwhelming concern expressed by the local neighborhood, is whether the
cars associated with our project will overrun the local residential streets if we do not offer
sufficient on-site parking.
GMD Development has designed projects with lower parking ratios, but those are located in the
central city and within walking distance of the light rail.
While we are encouraged that this site is near the planned South Renton Transit Center and
feel it will be a valuable long term amenity, the feedback we have received is that cars remain
very important in this location for commuting as well as family trips to soccer games, grocery
stores, etc.
We are being strongly encouraged to provide as close to a 1.0:1.0 ratio, at minimum for
marketability and acceptance by our funders.
Critical Project Timing Considerations
• Building code changes – February 1: we have been advised by our contractor that the
building code changes that are planned to go into effect on February 1 will have a
significant impact on our construction costs, estimated between 10-15%. Should we
miss submitting our permit plan prior to February 1, we risk feasibility.
• WSHFC – the Washington State Housing Finance Commission allocates tax exempt
bonds twice per year – January and July for 2021. We are planning to submit an
application in January and believe our project will score well.
Assuming we can meet both of these deadlines, we can hold together the project feasibility and
could be under construction by late summer 2021.
If we miss these deadlines, we could stand to lose feasibility and the start of construction could
be pushed to 2022 or later depending on any changes to the many factors that contribute to
feasibility.
Summary
Matt, we have enjoyed working in collaboration with you on this project over the past 6
months. You have always been clear on City expectations and I hope you feel we have been
open and responsive in return.
Looking back over the timeline and evolution of our design, I can understand why some
observers the city may feel we did a “bait and switch”, particularly in regard to the width of the
promenade. It was never our intent to deceive, but only by necessity to maintain feasibility.
Perhaps we did not fully explain the reasons for shifts in design.
In terms of Public Benefit, we feel that the current plan represents a plan that is financially
feasible and provides the city with a high quality, attractive building with 145 affordable homes
(20% being much needed 3-bedrooms) along with a fully improved, landscaped, and amenitized
promenade connector to the Burnett Linear Park.
We are hopeful that the City recognizes these public benefits and the value of moving forward
with a currently feasible project, rather than letting the site continue to stand vacant. Thank
you for your careful consideration.
Regards,
Steve Dymoke
Partner